Group Benefits for Employees

Business & Benefits

Group Benefits for Employees

Here are some common group benefits for employee options:

  • Group Critical Illness Insurance
  • Group Dental Insurance Plans
  • Group Disability Insurance
  • Group Life Insurance
  • Group Prescription Drug Health Plans

Group Benefits for Employees:

A group benefits program for employees offers additional coverage for healthcare needs beyond what is provided by Canadian provincial healthcare plans.

Additionally, Group Benefits programs may incorporate a design that includes retirement or savings plans to assist employees with financial and retirement objective such as the below:

  • Registered Retirement Savings Plan (RRSP): An RRSP is a tax-advantaged savings account that allows employees to contribute a portion of their income to save for retirement. Contributions to RRSPs are tax-deductible, and the investment growth is tax-deferred until withdrawal.
  • Group Registered Retirement Savings Plan (Group RRSP): A Group RRSP is similar to an individual RRSP, but it is offered through an employer. Employees can contribute to their Group RRSP through payroll deductions, and employers can also make matching contributions. Group RRSPs provide a convenient way for employees to save for retirement with the added benefit of potential employer contributions.
  • Tax-Free Savings Account (TFSA): A TFSA is a flexible savings account that allows individuals to contribute a certain amount each year, and the investment growth is tax-free. TFSA contributions are not tax-deductible, but employees can withdraw funds from their TFSA at any time without incurring taxes.
  • Employee Assistance Program (EAP): An EAP is a benefit program that provides employees with confidential counseling and support services for personal and work-related issues. EAPs typically offer services such as mental health counseling, financial advice, legal assistance, and other resources to help employees manage various challenges.
  • Health and Dental Benefits: Employers can provide health and dental insurance plans to employees to help cover medical expenses. These benefits can include coverage for prescription drugs, dental services, vision care, paramedical services (e.g., massage therapy, chiropractic care), and more.
  • Flexible Spending Accounts (FSAs): FSAs allow employees to set aside a portion of their pre-tax income to pay for eligible health care or dependent care expenses. This reduces employees’ taxable income and provides them with tax savings on their out-of-pocket expenses.
  • Wellness Programs: Employers can implement wellness programs to promote the physical and mental well-being of their employees. These programs may include fitness subsidies, gym memberships, mental health resources, wellness challenges, and educational resources on healthy lifestyle habits.
  • Stock Options and Employee Share Purchase Plans (ESPPs): Some companies offer stock options or ESPPs, allowing employees to purchase company stock at a discounted price. This provides employees with an opportunity to participate in the company’s success and potentially benefit from stock price appreciation.
  • Deferred Profit-Sharing Program (DPSP): Some companies offer DPSP to share a portion of the company’s profits with its employees. Under a DPSP, an employer contributes a portion of the company’s profits to a pool or trust fund, which is then distributed among eligible employees at a later date. The contributions made by the employer are not included in the employee’s taxable income until they are paid out or withdrawn from the plan. The DPSP contributions are typically based on a predetermined formula or percentage of the company’s profits. The allocation of the funds among employees is often based on factors such as length of service, level of compensation, or hours worked.

Designing an Employee Group Benefits Plan for Your Business

  • Creating your Employee Group Benefits allows your business the freedom to select from a wide range of choices whether insurance & non insurance products, in addition to retirement & savings options for employees to enhance their well-being and provide financial security by developing a plan that addresses your employees’ collective requirements, while also fitting within your company’s size and budget.
  • As an illustration, your employee group benefits package might encompass any of the subsequent options.

Basic coverage

Extended coverage

Insurance coverage

Group savings

Prescription drugs

Specialty treatments and services (i.e. Mental Health Services and Alternative Medicine)

Life 2x’s basic salary and accident

Registered Retirement Savings Program (RRSP)

Vision (i.e., exams, eyeglasses)

Maximum $100 to $400 every two years for glasses, contact lenses and frames

Short term and extended disability benefits

Tax Free Saving Account (TFSA)

Basic dental and health services

Major dental services and orthodontics

Critical illness

Employee Share Purchase Plans (ESPPs)

Paramedical services (i.e., chiropractic, massage, physiotherapy)

Increased limits for paramedical services



Group Prescription Drug Plans for Employees

Provincial healthcare coverage generally falls short when it comes to prescription drugs, leaving individuals with significant out-of-pocket expenses. As a result, prescription drug plans are highly desirable for both current and prospective employees, as they can greatly alleviate financial burdens.  There are various choices for prescription drug plans, which can be tailored to an individual company’s size and budget.

Group Dental Insurance

Dental health plays a vital role in maintaining one’s overall well-being, yet it is frequently not covered by provincial healthcare. The costs associated with routine dental care can be expensive, making group dental insurance plan a valuable perk for employees.

Group dental insurance can be broken down into categories ranging from basic to major coverage, so a business can choose the coverages it would like to include in its group dental insurance package along with the amount of coverage provided to employees, outlined as a percentage of the service or a set dollar maximum amount per year.

Group Health Insurance for Employees

A group health insurance plan offers employees a cost-effective means to obtain extended health insurance coverage, which encompasses services typically not offered by provincial healthcare in Canada.

Businesses can select services to include in the group health insurance plan, along with the coverage limits. Here are examples of services:

  • Massage Therapy
  • Physiotherapy
  • Psychologists
  • Naturopaths
  • Ambulance
  • Hospital Stays
  • Private-duty Nursing
  • Chiropractors
  • Speech Therapy

Group Life Insurance for Employees

A business that offers a Group Life Insurance Program for its employees is a crucial part of a comprehensive employee benefits package and total renumeration. It showcases a company’s commitment to the welfare and financial stability of its employees and their families.

By offering an employee life insurance program, an employer provides its employees with the reassurance that their loved ones will receive a lump sum payment to alleviate financial burdens in times of loss.

Furthermore, since the policy is purchased for a group, all employees typically qualify for some level of coverage, regardless of their health or pre-existing conditions. Opting for a Group Life Insurance program also offers a more cost-effective solution for employees compared to obtaining an individual policy.

Why should a business provide Group Life Insurance?

Employees can rest easy knowing that when they pass away their dependents are financially protected again a catastrophic life event. The death benefit can help families cover mortgage payments, debt payments, and much more.

Employers offering comprehensive and affordable group lie insurance as part of their total compensation package and renumeration can strategically recruit and retain employees.

Group Critical Illness Insurance

Critical illness insurance offers valuable financial support in the event of a life-threatening illness, like a heart attack, cancer, stroke, or coronary bypass (conditions covered are specified in the policy). In the event that an becomes ill within the policy term and survives for the designated survival period (usually lasting from 30 to 90 days), they will receive a one-time lump sum payment to aid in alleviating the financial strain caused by debts, lost income, medical bills, and other related expenses.

Certain policies provide coverage for up to 30 life-threatening illnesses. Nevertheless, similar to all policies, critical illness insurance includes standard exclusions. For instance, pre-existing conditions, attempted suicide, and incidents related to alcohol and drug use are typically not covered by critical illness insurance.

Purchasing group critical illness insurance enables an employer to provide its employees with cost-effective premiums, which are typically lower compared to individual policy purchases.

Group Disability Insurance

Disability insurance serves to alleviate the financial strain on employees who experience temporary or permanent inability to work due to injury or illness. It provides a percentage of the employee’s regular income for a specific duration, with a maximum dollar amount.

There are two categories of disability insurance:

  1. Short-term disability insurance offers benefits typically lasting up to 16 weeks, but it can extend up to two years.
  2. Long-term disability insurance provides benefits for an extended period, following the cessation of short-term disability benefits. While a standard disability policy offers benefits until an employee turns 65, certain policies are designed to provide benefits for two or five years.

It’s important to note that disability insurance payments are not indefinite. The benefits end either when the maximum benefit period is reached or when the employee returns to work.

Furthermore, it is crucial to differentiate between group disability insurance and other types of group coverage, such as group critical illness insurance, which grants a lump sum payment if an employee survives a life-threatening illness, and group life insurance, which pays their loved ones a lump sum payment to alleviate financial burdens in times of loss.

Who pays for group disability insurance?

Designing a group disability insurance plan for a business offers versatile options. For instance, a business has the flexibility to either cover the complete premium or to allocate a portion or the entire cost to its employees.

How is group disability insurance priced?

The pricing for group disability insurance can differ based on a business’s plan configuration and the insurance carrier choosen. Several factors that can influence the premium rate include, but are not restricted to:

  • Benefit coverage level
  • Employee count and average age
  • Industry and occupational hazards
  • Plan customization options
  • Claim history and experience rating
  • Geographic location of the business
  • Duration and waiting periods for benefits
  • Additional riders or optional features

Please note that these are just a few examples, and there may be other factors that can impact the cost of group disability insurance.

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